The Q-Comm Ad Rush, Games24x7 Axes 500 Jobs & More

The Quick Commerce Ad Goldmine

The quick commerce arena has turned into a marketing battleground. What started as a convenience play has evolved into India’s newest advertising goldmine. And it has now started to threaten Google and Meta. So, what does a 10-minute marketing revolution look like?

Setting The Bait: Quick commerce giants have rolled out a suite of advertising packages, ranging from INR 2 to INR 9 lakh for three months, to woo advertisers. What is also attracting D2C brands to quick platforms is the growing discontent with the escalating cost-per-click rates on traditional digital advertising giants like Meta and Google.

The Great Migration:

D2C brands are now redirecting 60-70% of their marketing budgets to quick commerce. This is because 10-minute delivery platforms offer higher conversions and 2X to 3X higher return on ad spend than traditional digital advertising.

The New Ad Powerhouses: Capitalising on their huge captive audiences, Blinkit, Instamart, and Zepto are no longer just delivery platforms, but have transformed into advertising giants. The three players collectively generate an estimated INR 3,000 Cr to INR 3,500 Cr in annual recurring revenue from ads.

Yet this advertising boom carries inherent challenges. While quick commerce platforms were initially cheaper than conventional digital routes, the 40-50% jump in ad rates during festive seasons threatens to price out emerging D2C players.

The 10-Second Problem:

There is also the problem of thousands of brands competing for limited screen space, high dependence on platform algorithms (discovery often depends on search ranking) and very little space offered by these marketplaces for storytelling.

As India’s quick commerce sector races toward $40 Bn market opportunity by 2030, can the impulse-driven ad model sustain its appeal without becoming prohibitively expensive for the D2C brands? Let’s find out.

From The Editor’s Desk

Games24x7 Axes 500 Jobs:

Following the Centre’s ban on online real money gaming, the unicorn now plans to lay off nearly 70% of its workforce. This comes months after the gaming giant fired 180 employees in May, fearing a revenue hit from a GST clarification.

Urban Company IPO Day 1: The hyperlocal services giant’s public issue was oversubscribed 3.1X on the first day, receiving bids for 33.3 Cr shares against 10.6 Cr shares on offer. The retail portion was oversubscribed 7X.

Avanse’s FY25 Profit Zooms:

The NBFC’s net profit rose 46.6% to INR 502 Cr in FY25 from INR 342.4 Cr in FY24. Revenue from operations jumped 36% YoY to INR 2,347 Cr during the period under review.

A Junior VC Closes Debut Fund: The Aviral Bhatnagar-led investment firm closed its maiden fund at INR 200 Cr. Backed by Indian family offices, HNIs and founders, the fund has so far backed 25 startups across sectors such as SaaS, AI, consumer tech and D2C.

Asaya Bags INR 28 Cr:

The D2C skincare brand raised the capital in its Pre-Series A round led by RPSG Capital, with participation from OTP Ventures and Huddle Ventures. The startup offers skincare products to address hyperpigmentation, dehydration, acne and more.

DevX IPO Day 1: The coworking space provider’s public issue was oversubscribed 5.3X at the end of the first day, receiving bids for 7 Cr shares as against 1.3 Cr on offer. While the retail portion was subscribed 19.6X, the non-institutional quota was subscribed 4.5X.

EndureAir Nets INR 25 Cr:

The drone tech startup has raised the funding from Indian Angel Network to build aerial robotics platforms. EndureAir designs and develops drones, novel airframes, communication frameworks, among others.

India Reinforces AI Push: The Centre plans to deploy 38,000 GPUs and establish 600 data labs for research and innovation in the field of artificial intelligence. Meanwhile, the government also pitched the need for building ethical AI frameworks and combating misinformation.

Inc42 Startup Spotlight Inside FirstClub’s Premium Twist To Quick Commerce

In India’s booming quick commerce landscape, consumers often face a persistent dilemma – speed comes at the cost of quality. Solving this problem for India’s $8.82 Bn online grocery market is FirstClub with its ‘affordable luxury’ playbook.

The FirstClub Solution:

Founded in 2024, the quick commerce platform sells “high-quality” everyday essentials and lifestyle products at affordable prices. Unlike traditional quick commerce players offering identical product ranges, the startup curates just four or five top-quality options instead of stocking 50 brands.

The Pricing Edge: By eliminating intermediary layers and working directly with manufacturers, FirstClub sells its staples at competitive rates while ensuring quality through three-stage checks. Currently operating four dark stores across Bengaluru, the company plans to open 35 new locations ahead of the upcoming festive season.

Expansion Blueprint:

FirstClub claims to have achieved a 60% repeat rate and 2X higher average order values compared to leading quick commerce players. Backed by its recent $23 Mn round, the startup plans to diversify beyond grocery delivery into cafés, festive gifting, and home products.

As FirstClub scales from Bengaluru’s micro-market to wider geographies, can its premium-focussed model compete with giants like Blinkit, Zepto, and Instamart?

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